Capitol Fax.com - Your Illinois News Radar » *** UPDATED x1 *** Moody’s says Rauner veto is just one of many problems facing CPS
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
*** UPDATED x1 *** Moody’s says Rauner veto is just one of many problems facing CPS

Friday, Dec 2, 2016 - Posted by Rich Miller

* From Rachel Cortez, Vice President & Senior Credit Officer at Moody’s Investors Service…

“Yesterday, the Governor of Illinois vetoed a $215 million payment to help cover the pension costs for Chicago Public Schools (rated B3/negative outlook). If the veto holds, CPS’ deficit net cash position could stand at over $1 billion when its fiscal year ends in June 2017. While the funds from a possible veto override would be positive for CPS, there would still be insufficient funding to alleviate the school district’s severe liquidity issues.

“CPS remains dependent on cash flow borrowing and state assistance to sustain its operations, and its reserves are nearly depleted. While CPS can still take steps to address its fiscal situation, its financial position remains weak and could further deteriorate.”

* Meanwhile…


Hilarious. Dude vetoes $215 million over a few words at a press conference without so much as a phone call to verify intent and he asks people to tone down the rhetoric.

*** UPDATE ***  Gov. Rauner’s full remarks…

       

27 Comments
  1. - 47th Ward - Friday, Dec 2, 16 @ 1:12 pm:

    ===“Within the next two weeks, Deb Conroy must decide whether she will stand with the families in her district, or vote to bail out Chicago Public Schools with $215 million in taxpayer money. Conroy should make clear today where she stands.”===

    After that barrage, now it’s time to tone down the rhetoric? Lol.

    I bet I know what the Mayor thinks the Governor can do with his recommendation.


  2. - JustRight - Friday, Dec 2, 16 @ 1:17 pm:

    Rauner just won $3 billion in savings with the labor board’s ruling on the AFSCME union negotiations. I think Rauner has more room to talk on the subject. Rahm has only folded to billions in increases in CTU salaries, pensions and benefits… Rahm caused his own problems by folding on negotiations with the CTU and now he’s lecturing Rauner… lol


  3. - wordslinger - Friday, Dec 2, 16 @ 1:19 pm:

    Perhaps the GOP could send out a couple hundred emails:

    “Will (legislator X) tell Emanuel to tone down the rhetoric.”


  4. - Piece of Work - Friday, Dec 2, 16 @ 1:22 pm:

    Dem rule for decades rearing its extremely ugly head


  5. - T Sowell - Friday, Dec 2, 16 @ 1:30 pm:

    Perhaps Moody’s and Rahmbo should look at the root causes of CPS liquidity problems, rather than blaming Rauner for his veto.


  6. - nickname - Friday, Dec 2, 16 @ 1:35 pm:

    he wants CPS to go bk so he can restructure.

    day 1 rauner stuff.


  7. - Anonymous - Friday, Dec 2, 16 @ 1:36 pm:

    If it was anything like my first thought I’ll bet Rahm already toned it down from his original response.


  8. - nickname - Friday, Dec 2, 16 @ 1:36 pm:

    i wouldn’t doubt that rahm is privately unopposed^


  9. - nickname - Friday, Dec 2, 16 @ 1:36 pm:

    as long as he can blame it on the governor.


  10. - West Sider - Friday, Dec 2, 16 @ 1:42 pm:

    Attention: The beatings will continue until moral improves.


  11. - justacitizen - Friday, Dec 2, 16 @ 1:52 pm:

    President-elect Trump might tone down Emanuel’s rhetoric next month when he cuts funding because of Rahm’s sanctuary city stance.


  12. - Sue - Friday, Dec 2, 16 @ 1:58 pm:

    Just Right- your kidding right. Labor Board rules and right away the $$ falls into the State’s lap. Maybe you don’t know about the lawsuit the Union filed in Madison County.


  13. - Lincoln Clay - Friday, Dec 2, 16 @ 2:02 pm:

    Rahm made a conscious decision to sit on his hands (rhetorically speaking) in the fall of 2014, now he has to deal with the consequences of that decision like a big boy. For his sake, I hope the piles of cash the Gov helped him collect while at Wasserstein Perella make it easier for to him sleep at night.


  14. - wordslinger - Friday, Dec 2, 16 @ 2:03 pm:

    –President-elect Trump might tone down Emanuel’s rhetoric next month when he cuts funding because of Rahm’s sanctuary city stance.–

    Sad as it may be to some, the gig is president, not dictator.


  15. - hisgirlfriday - Friday, Dec 2, 16 @ 2:08 pm:

    Tone down the rhetoric… or what?

    Is Rauner gonna talk Ken Griffin to run against Rahm for mayor or what?


  16. - Jocko - Friday, Dec 2, 16 @ 2:13 pm:

    ==Rauner just won $3 billion in savings==

    Citation needed.


  17. - 47th Ward - Friday, Dec 2, 16 @ 2:13 pm:

    ===President-elect Trump might tone down Emanuel’s rhetoric next month when he cuts funding because of Rahm’s sanctuary city stance.===

    What makes you think the President-elect plans to keep any of his campaign promises? I mean, judging from his early moves, I wouldn’t hold my breath waiting for him to take on Wall Street or “drain the swamp.”

    Caveat emptor. Lol.


  18. - Jack Jackson - Friday, Dec 2, 16 @ 2:28 pm:

    Until Pate Philip, Lee Daniels, the Republicans they controlled, and Mayor Daley changed the funding formula for Chicago Teachers Pension Fund in the mid 1990s, teachers’ retirements in Chicago were 100% funded.

    Let’s hope the future remembers Governor Rauner for his role in destroying state universities and so much more.


  19. - Deft Wing - Friday, Dec 2, 16 @ 2:31 pm:

    Come on, you have to admit that expressing a “strong recommendation” about toning down the rhetoric is at least funny.

    Totally hypocritical, but funny.


  20. - A guy - Friday, Dec 2, 16 @ 2:33 pm:

    The taste of your own medicine is a bitter experience.


  21. - Sue - Friday, Dec 2, 16 @ 2:50 pm:

    Maybe Rahm and his council need to rethink the Trump Street sign decision. They might need some help (maybe the Clinton Foundation will bail out CPS). LOL


  22. - Carhartt Representative - Friday, Dec 2, 16 @ 2:59 pm:

    ==Rahm has only folded to billions in increases in CTU salaries, pensions and benefits… Rahm caused his own problems by folding on negotiations with the CTU and now he’s lecturing Rauner… lol==

    Two years of pay raise and then like 2% for two years. I’m pretty sure that adds up to trillions, not billions.


  23. - Oswego Willy - Friday, Dec 2, 16 @ 3:25 pm:

    Rauner lacks in governing, and understanding the governing…

    His quotes and recklessness point to the lacking.


  24. - Jack Jackson - Friday, Dec 2, 16 @ 3:44 pm:

    According to a May 21st, 2016 Crain’s article, the number of millionaires in Illinois has grown 5.2% since 2014, up to 280,265 individuals.

    Illinois Flat tax: 3.75%
    Wisconsin Income tax - highest rate: 7.65%
    Iowa Income Tax - highest rate - 8.98%
    Minnesota Income Tax - highest rate - 9.85%

    If Gov. Rauner paid 3.75 % of the $188 millioin he earned last year, he paid the state %7,050,000 in state income taxes, rather than the $16,882,400 he might have paid in Wisconsin.

    This demonstrates why Illinois can’t pay its teachers a reasonable middle class wage and a fair, dignified retirement.


  25. - Jack Jackson - Friday, Dec 2, 16 @ 3:46 pm:

    Ooops. My mistake. The &16,882,400 figure came from applying the Iowa rate of 8.89%, not Wisconsin’s.


  26. - Jack Jackson - Friday, Dec 2, 16 @ 3:48 pm:

    http://www.chicagobusiness.com/article/20160521/ISSUE01/160529986/were-rich-illinois-has-more-millionaires-than-ever

    Crain’s article - Illinois’ growing wealthy class.


  27. - Rod - Friday, Dec 2, 16 @ 3:48 pm:

    The critical part of the Moody’s Investors statement is that even if the House overrides the veto the $215 million “would still be insufficient funding to alleviate the school district’s severe liquidity issues.” That is a correct analysis to put it simply. Moreover, SB 2822 which can be read as amended and vetoed at http://www.ilga.gov/legislation/99/SB/PDF/09900SB2822ham003.pdf is not what is called a continuing appropriation bill.

    That means it provides the Public School Teachers’ Pension and Retirement Fund of Chicago a onetime payment of $215 million for FY 17. That payment is also part of the State’s very limited obligation for payments to the Fund under 40 ILCS 5/17-127 which is only by law an amount equal to 0.544% of the Fund’s total teacher payroll. Last year that payment was $12.1 million (FY 16 payment as listed on CTPF website). This big fight over the $215 million veto is crazy, because it’s sort of like CPS begging for a one year bail out every year into the indefinite future.

    By the way, why does anyone think any Republican member of the House would break with the Governor over SB 2822? Why would anyone believe Jack Franks would run back to Springfield to vote to override this, or for that matter even Ken Dunkin who has a kid in CPS. Is Ken more likely to get a job offer from the Speaker and the Mayor or from the Governor and his allies?


Sorry, comments for this post are now closed.


* Selected react to budget reconciliation bill passage (Updated x2)
* Reader comments closed for Independence Day
* SUBSCRIBERS ONLY - Some fiscal news
* Isabel’s afternoon roundup (Updated)
* RETAIL: Strengthening Communities Across Illinois
* Groups warn about plan that doesn't appear to be in the works
* SB 328: Separating Lies From Truth
* Campaign news: Big Raja money; Benton over-shares; Rashid's large cash pile; Jeffries to speak at IDCCA brunch
* Rep. Hoan Huynh jumps into packed race for Schakowsky’s seat (Updated)
* Roundup: Pritzker taps Christian Mitchell for LG
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Supplement to today’s edition (Updated)
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Selected press releases (Live updates)
* Live coverage
* Trump admin freezes $240 million in grants for Illinois K-12 schools
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
July 2025
June 2025
May 2025
April 2025
March 2025
February 2025
January 2025
December 2024
November 2024
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller